JP Morgan fined for not reporting half of FX swap trades
US bank incorrectly believed one-day swaps did not have to be reported
JP Morgan has been fined by the US Commodity Futures and Trading Commission for failing to report more than two million short-dated foreign exchange swap trades over a five-year period.
According to a CFTC order released yesterday (July 6), these short-dated FX swaps – often referred to as “tomorrow-next swaps”, in which two currencies are exchanged the day after execution and then reversed at a predetermined rate on the following business day – represented roughly 51% of all the FX swap trades
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